GPT Infraprojects Limited. Business Update Presentation Q2 FY 2018

Transcription

1 GPT Infraprojects Limited Business Update Presentation Q2 FY 2018

2 Safe Harbor This presentation and the accompanying slides (the Presentation ), which have been prepared by GPT Infraprojects Limited (the Company ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contractor binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded Certain matters discussed in this Presentation may contain statements regarding the Company s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company s ability to successfully implement its strategy, the Company s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company s market preferences and its exposure to market risks, as well as other risks. The Company s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections 2

3 Q2FY18 : Business & Financial Update

4 Key Business Updates Won Arbitration Award of Rs. 620 mn against NHAI Jogbani Highway - Subsidiary Company of GPT Infra awarded claim by 3 member Arbitration tribunal Unanimously Concession Agreement terminated due to Non availability of Land from NHAI after delay of 30 months & other local hindrances Interim Dividend of Rs. 1 per equity share Board recommended Interim dividend of 10% i.e. Rs. 1 per equity share Order Back log of Rs. 20,230 mn as of Sep 17 Order Intake of Rs. 5,070 mn in current Financial year 4

5 Consolidated financial highlights Rs Million Q2 '18 Q2 '17 YoY% H1 '18 H1 17 YoY% Revenue , % 2, ,542.2 Other Operating Income % Net Sales , % 2, , % Operating expenses , % 1, ,183.3 EBITDA % % EBITDA margin 18.1% 14.1% 15.3% 14.2% Depreciation % Other Income % Interest % PBT % % Tax Expenses (Credits) % PAT % % PAT Margin 4.1% 2.5% 4.0% 3.3% Minorities PAT after Minorities % % 5

6 Revenue break-up Segmental revenue break-up: Q2 FY18 Segmental revenue break-up: FY17 Concrete Sleeper, 26.9% Concrete Sleeper, 13.6% Infrastructu re, 73.1% Infrastructu re, 86.4% 6

7 Rs. 5,068 mn of orders intake so far in FY18 Segmentw Project Client Value (Rs Mn) Infrastructure Road, Bridges and Highways Construction of ROB and approaches on NH-60, West Bengal Public Works (Roads) Directorate, Govt of WB 2,100.3 Concrete Sleeper Multiple orders in concrete sleeper 1,033.7 Infrastructure Misc. orders in infrastructure Infrastructure Railway tracks Infrastructure Steel Bridge Earth work, Minor Bridges, retaining wall including other ancillary works in Boko & Mirza Construction of bridge, earthwork in approached in Lalitpur-Jhansi section in connection with Bina-Jhansi 3rd line project Northeast Frontier Railway North Central Railway Infrastructure Road, Bridges and Highways Construction of bridge for Shakkar River for Gadarwara Railway Siding for NTPC Konkan Railway Corporation Limited Leading to Order Backlog of Rs 20,230 mn 7

8 Key Growth Drivers & Business Strengths Pick-up in Railway Capex to foster growth Consistent Focus on profitability Healthy order book Strong management & better corporate governance

9 Pick-up in Railway Capex. Railways steps up 5 year (FY16-20) investment plan to Rs 8.56 tn FY18 Railway Capex pegged at Rs 1,310 bn, expecting a gross budgetary support of Rs 550 bn Allocated Rs 1,993 bn for FY16-20 for DFC, doubling / tripling of lines, electrification and traffic facilities Allocated Rs 1,930 bn for FY16-20 on network expansion with electrification To construct eastern and western dedicated freight corridors to for decongestion Network decongestion Network Expansion Target to lay 1,700 km of new lines Allocated Rs 1,270 bn for FY16-20 for track renewal, bridge works, ROB, RUB and S&T Eliminating unmanned level crossings by 2020 Safety Rolling stock, station redevelopm ent, others Allocated Rs 3,367 bn for FY16-20 Target to redevelopment 25 stations and provide lifts / escalators in 500 stations in FY18 9

10 . Presents significant growth opportunity for GPT. How GPT is well geared to benefit from the uptick in railway capex Bridge construction opportunity Setu Bharatam Rs 500+ bn to construct of 208 ROBs, rebuild 1,500 British era bridges Rashtriya Rail Sanraksha Kosh Portion of Rs 100 bn earmarked for bridge rehabilitation Unmanned level crossing (UMLC) - Eliminating 4,943 UMLC by 2020 through ROBs/RUBs Rashtriya Rail Sanraksha Kosh - Portion of Rs 100 bn earmarked for track renewal Other EPC opportunity Laying 8,100 km of doubling tracks Target to double track renewal target set at 3,500 km for FY18 DFC opportunity for Bridges, ROBs / RUBs Eastern DFC to include construction of 104 bridges, 368 ROBs, RUBs and 21 flyovers Western DFC to include 262 bridges, 33 flyovers, 505 ROBs and 200 RUBs DFC opportunity for sleepers 3,360 km Eastern and Western DFCs - ~11mn sleepers opportunity 3 new freight corridors (5,769 km rail tracks) - ~20 mn sleepers opportunity 10

11 . Reflected in consistent order intake Order Inflow (Rs Mn) Order Book (Rs Mn) 8,813 7,112 16,500 18,510 20,230 5,068 12,460 3,540 FY15 FY16 FY17 FY18* Mar '15 Mar '16 Mar '17 As on date * Till date 11

12 Healthy order book across segments Order Book Rs 20.2 bn 13% 3% 4% 7% Concrete Sleeper 16% 45% 8% 9% 0% 73% West Bengal Uttar Pradesh Bangladesh Sri Lanka South Africa Namibia Infrastruct ure 84% Industrial Roads, Bridges and Highways 38% Railway Tracks Steel Bridges Key Orders under Execution Project Client Value (Rs mn) Monoblock sleeper supply under package 201 & 202 in UP GILSIL JV for DFCC 2,465 Construction of steel girder bridges in Mathura-Jhansi third line RVNL 2,173 Construction of ROB and approaches on NH-60, West Bengal Public Works (Roads) Directorate, Govt of WB 2,100 Approach bridge for Burdwan ROB RVNL 1,143 ROB Flyover between Sankrail and Santragachi Stations South Eastern Railway 1,133 12

13 Focus on consistent operating margin Uptick in Revenue from Operation with increased IR Investment Healthy EBITDA with consistent margin In Rs mn 13% 15% 14% 13% In Rs mn 4,528 5,028 5, , FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 13

14 & better working capital cycle leading to improved profitability Working Capital Days Profit After Tax Return on Equity 232 Better and faster payments from clients Consistent follow-up to reduce certification time for the project Higher order execution In Rs mn 9.3% % % % Mar '15 Mar '16 Mar '17 Sep '17 FY15 FY16 FY16 H1 FY18 FY15 FY16 FY17 H1 FY18 14

15 Experienced management with strong industry background Dwarika Prasad Tantia Chairman Shree Gopal Tantia Managing Director Atul Tantia Executive Director Vaibhav Tantia Director & COO Arun Kumar Dokania Chief Financial Officer With an experience of over 45 years, he leads the Company s growth initiatives. Responsible for the Company s entry into the sleeper business both in India and internationally. He is the Hony. Consul of Ghana in Kolkata 35 years experience in infrastructure. Possesses strong project execution capabilities and manages the company s diversified customer relationship Graduated Magna Cum Laude from Wharton School in Finance and Systems Engineering. Leads the company s manufacturing operations, manages relationship with banks and financial institutions Graduated Summa Cum Laude from Wharton School in Finance and Civil Engineering. Leads the EPC segment including management of projects and business development B. Com, FCA with over 35 years experience in the infrastructure industry. Seasoned finance professional responsible for finance, accounts, banking and legal matters 15

16 With focus on better corporate governance Board of Directors Statutory Auditor Kashi Prasad Khandelwal Independent Director Sunil Patwari Independent Director Viswa Nath Purohit Independent Director S R Baltiboi & Co. - Member firm of Ernst & Young Is a fellow member and holds certificate of practice with the ICAI. Has wide knowledge on subjects like Union Budget, Accounting, Corporate Laws, Corporate Governance and Income Tax matters. Holds PGDM degree from IIM, Ahmedabad and is an associate member with ICAI. Has wide experience in the area of Business Management, Accounts, Taxation and Finance Is a fellow member and holds certificate of practice with the ICAI. He carries more than 55 years of experience in Accounts, Finance and Taxation Marquee Private Equity Investor Nine Rivers Capital - Funding in Jan 2010 Mamta Binani Independent Director Shankar Jyoti Deb Independent Director Kunal Kumthekar Nominee Director A fellow member and holds certificate of practice with the ICSI. Was President of ICSI in 2016 and has more than 15 years of experience in Corporate Consultation & Advisory Holds a Bachelor s degree in Science and Bachelor s degree in Civil Engineering. Has completed a financial management programme from IIM, Calcutta. Has wide experience in designing, engineering and implementation of civil projects Holds a Bachelor s degree in Mechanical Engineering and an MBA degree. Is also a graduate of the Wharton Advanced Management Program. Has a rich experience in financial markets and was associated with JM Financial 16

17 Annual Financial Highlights

18 Consolidated financial highlights Rs Million FY15 FY16 FY17 Revenue 3, , ,111.2 Other Operating Income Net Sales 3, , ,126.4 Operating expenses 3, , ,445.8 EBITDA EBITDA margin 15.1% 13.5% 13.3% Depreciation Other Income Interest PBT Tax Expenses (Credits) PAT

19 Consolidated Balance Sheet Rs Million Mar-17 Sep-17 Share Capital Reserves 1,715 1,640 Shareholders' Funds 1,860 1,927 Secured Loans Trade payables 85 - Def Tax Liabilities Other liabilities Long Term Provisions Total Non-Current Liabilities Trade Payables 1,230 1,250 Other Current Liabilities Short Term Borrowings 2,188 2,217 Total Current Liabilities 4,009 4,261 Minority Interest Total Liabilities 6,374 6,626 Rs Million Mar-17 Sep-17 Fixed Assets incl. CWIP 1,442 Long Term Loans & Advances 440 Other Non Current Assets 475 1, Total Non-Current Assets 2,356 2,216 Inventories Sundry Debtors Cash and Bank Short term Loans and Advances Other Current Assets 1,736 1,785 Total Current Assets 4,018 4,414 Total Assets 6,374 6,630 19

20 Contact Us GPT Infraprojects Limited Atul Tantia Neha Marwah Stellar IR Advisors Pvt. Ltd. (Investor Relations) Gaurang Vasani Pooja Sharma GPT Infraprojects Limited CIN: L20103WB1980PLC GPT Centre JC-25, Sector-III, Salt Lake City Kolkata , West Bengal